Gold Price Today: Yellow metal opens at Rs 70,977/10 grams, silver at Rs 88,743/kg

Gold August futures contracts at MCX opened flat on Thursday at Rs 70,977 per 10 gram, down merely 0.16% or Rs 112, while silver September futures contracts were trading at Rs 88,743/kg, down by 0.44% or Rs 392.

Gold prices have steadied slightly after two days of declines. The previous record high in May was driven by expectations that the Federal Reserve would cut interest rates. Since then, gold has dropped 6% because Fed officials signaled that only one rate cut is expected this year, rather than the three cuts forecasted in March.

Fed Governor Michelle Bowman mentioned on Tuesday that inflation risks are high and borrowing costs need to stay elevated, further reducing hopes for immediate rate cuts.

Swap markets now show a 57% chance of a rate cut in September, down from 60% the previous day. Upcoming economic data, including the Fed's preferred consumer cost gauge, will provide more insight into potential rate cuts.

Today, the US Dollar Index, DXY, was hovering near the 105.95 mark, falling 0.11 or 0.10%.

“On the daily chart, MCX Gold August is trading close to its trend line support and has formed a Bearish Engulfing candlestick pattern, signaling potential weakness. It is currently trading below its 21 and 50-day EMAs, which indicates further downside potential. The RSI is showing negative divergence, further suggesting a possible decline. Resistance levels are around 71,500 and 71,900, while support levels are around 70,700 and 70,082,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Intraday Trading Strategy by Neha Qureshi

• Sell MCX August gold futures at Rs 71,200 with a stop loss of Rs 71,600 and a price target of Rs 70,700
  
• Sell MCX July silver futures at Rs 87,000 with a stop loss of Rs 88,000 and a price target of Rs 85,000
  

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)